OZ Minerals shares dip on profit warning

Australia's third largest diversified miner OZ Minerals Ltd has responded to a query from the Australian stock exchange with a profit warning.

Its shares were down 12.5 cents, or 17.12 per cent, to 60.5 cents at 1356 AEDT.

OZ Minerals shares have fallen steadily in the past week on high volume, from 98.5 cents on Wednesday November 12 to 73 cents on Tuesday November 18, down 12.05 per cent.

The company was formed this year through the merger of Oxiana Ltd and Zinifex Ltd, and produces zinc, copper, nickel, gold and lead from operations in Australia and Laos.

It said in a statement on Wednesday that it did not know of any information that could explain recent trading in its securities.

"However, as a consequence of substantially lower commodity prices, current volatility ... and general higher production costs ... OZ Minerals' net profit after tax for 2008 is expected to be lower than that reported by each of Oxiana and Zinifex in those companies' prior financial periods," OZ Minerals said.

"At this stage, it is still not possible for OZ Minerals to provide a reasonable and meaningful indication of 2008 profits for the purpose of market guidance in view of the current volatility of trading conditions and metals markets."

OZ Minerals said on November 10 that potential production cuts and development delays were a possibility after initiating a review of its capital and operational expenditure.

It has already rescheduled operations at its Golden Grove mine in Western Australia to reduce zinc output and increase copper production.